Define the concept and nature of a 'cover note' under a general insurance agreement.

Cover note is the document which is issued immediately after insurance premium is received to prove that insurance cover exists. Cover note is valid for 60 days from the date of issue. Cover note is mostly used in motor insurance and transit insurance, particularly for import covers by sea. The cover note in marine insurance would be valid for duration of transit. The cover note does not amount to a policy or an engagement to issue the policy and can be used only for compelling the delivery of the policy and cannot be used for any other purpose. If a claim were to arise between the issue of the cover note and the regular policy, authorities have proceeded to decide claims. But often, difficulties arise in the case of special policies. But, the fact remains that a cover note evidences the payment of premium, assumption of the risk from the date mentioned therein and is for all purposes a policy.